The authorised dealer banks will extend foreign currency financing to the members of BGMEA via borrowing money from EDF.
The newly released directive of the Bangladesh Banks Foreign Exchange Policy Department allows a BGMEA member manufacturer-exporter to get a loan of as much as $20 million via an authorised dealer bank for input purchases against export letter of credit (L/C), firm export contract and inland back-to-back L/C.
The 2008 failure and near-collapse of some of the largest dealer banks underscored the complexity and vulnerability of the industry.
A study of dealer banks finds that their unique sources of financing are highly efficient in normal times, but may be subject to marked and abrupt reductions in stressful times.
Global Banking News-September 15, 2014--BB seeks remittance information from dealer banks
In addition, they would curtail access to capital markets for small municipal issuers that rely on local dealer banks
to underwriter their debe securities.
The IILM auctioned a USD490m three-month sukuk to seven primary dealer banks